Snapshot: Impact of image authenticity for the auto warranty industry

The auto warranty industry is rapidly digitizing, driven by the need to improve efficiency, reduce costs, and meet evolving customer expectations. Traditionally dependent on manual inspections and time-intensive processes, warranty providers are now embracing digital solutions that streamline operations to speed up accurate claims processing. However, this shift comes with new challenges, including the growing threat of synthetic or AI-generated image deception in digital workflows which can increase risk.

Truepic Vision addresses these challenges by providing robust authenticity verification for digital images submitted during warranty claims. By ensuring the authenticity of visual content, Truepic Vision allows warranty providers to confidently process claims while mitigating the risks associated with fraudulent, AI, or manipulated imagery. This authenticity not only safeguards providers from potential losses but also creates a faster, more transparent experience for customers. By enhancing security in the claims process, Truepic Vision is helping the industry unlock the benefits of remote inspections while protecting against emerging threats.

By the numbers 

Truepic conducted an analysis of its most recent 75,000 verifications for auto warranty claims to evaluate the impact of its technology. The goal was to measure how Truepic’s solutions drive benefits for warranty providers, enhance customer experiences, and contribute to the broader economy. Within this study, Truepic Vision has:

• Successfully reviewed 75,000 auto warranty verifications and inspections across all 50 states, Puerto Rico, Canada, Mexico, Ecuador, and the U.K. Vision allows auto warranty providers to initiate and administer claims nationwide and internationally in seconds. 
• Delivered $22M+ in cost savings for auto warranty companies by streamlining inspections. The cost of one Vision verification is >80% less than traditional in-person methods. ‍
• Detected and prevented 7,000+ instances of fraud, protecting an additional $8M+ in fraudulent warranty payouts. In this analysis, Vision identified suspicious indicators and “walk-away” claims.‍
• Saved customers a collective 125,000+ days by reducing claim response times.

Suspicious activity and fraud indicators 

Out of 75,000 auto warranty claims analyzed, approximately 10%—or 7,474 claims—were flagged as suspicious or potentially fraudulent. Truepic estimates the value of these flagged claims to exceed $8 million. These cases were identified either through suspicious indicators detected by Truepic Vision or through "walk away" claims—instances where claimants abandoned the process when asked to provide documentation via the platform, a behavior long regarded as a red flag of potential fraud.

Of the 7,474 suspicious cases identified, 5,625 claims—valued at over $6.1 million—were classified as "walk away" claims dropped by the initiators. The remaining 1,849 claims—estimated at $2 million—were flagged for photo fraud. The most common fraud techniques detected by Vision are:

• Geolocation spoofing: Geolocation spoofing involves falsifying the geographic location associated with an image, making it appear as though it was captured in a different place. This manipulation can be performed directly on most native phone cameras or through widely available apps. It enables image fraud by misrepresenting the authenticity of events, such as fabricating damage claims in specific locations for insurance or warranty purposes.

• Metadata manipulation: Similarly, this entails altering the metadata (e.g., timestamp, device type) embedded in an image to misrepresent its origin or context. Manipulating metadata can lead to image fraud by fabricating evidence, such as false timestamps for warranty eligibility, and fabricated or unauthorized locations. 

• Rebroadcast attacks: Rebroadcast attacks involve reusing previously captured or transmitted images to deceive verification systems, often by photographing or recording an image displayed on a computer screen. This technique enables image fraud by presenting outdated or irrelevant content as newly captured, eroding trust in time-sensitive visual documentation and verification processes. There are public websites and platforms where images of commonly claimed parts are readily accessible, providing bad actors with an easy source to recapture and repurpose images for fraudulent submissions.

• Impersonation attacks: These attacks involve using stolen or falsified credentials to upload images to impersonate an authorized or trusted source. This facilitates image fraud by giving false legitimacy to manipulated or fake visuals, such as counterfeit product documentation or fraudulent claims. 

• Object reuse: Object reuse involves using the same physical object, referred to as the “golden part,” such as a damaged tire, and photographing it multiple times to submit fraudulent claims. This type of fraud is particularly common in routine claims, like tire or wheel damage, where the same damaged tire is photographed repeatedly to fabricate multiple incidents. This tactic deceives claim processors by creating the illusion of recurring issues, undermining trust in the claims process. 

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Fraud example: Object reuse 

Fraud detection in claims processing has become more challenging with the reuse of duplicate photos of vehicle parts submitted across multiple claims. These photos are often disguised with slight changes in angles or timestamps, making detection difficult. One of Truepic’s auto warranty partners encountered a case involving a regulated Original Equipment Manufacturer (OEM) in Canada. Over three years, the OEM submitted 29 fraudulent claims, resulting in $350,000 in false payouts. The fraud relied on reusing images of parts like turbos and rims, a tactic that would have been hard to identify without advanced tools. 

Using Truepic Vision, the partner uncovered the issue and verified claims through photo and video walkarounds which provided the necessary evidence to reach a resolution. The same partner later implemented Vision in the Midwest, where it uncovered another fraud ring using similar methods. After the discovery, claims in the region dropped significantly, demonstrating the extent of the issue and the value of technology in improving fraud detection.

Customer comment

“Truepic offers ease of use and expedited services that significantly streamline our claims process. A notable benefit is the elimination of the need to dispatch third-party inspectors for evaluating trucks under warranty repairs. This has not only improved efficiency but has also contributed to a more seamless and cost-effective operation.

Truepic offers us peace of mind with its digital inspection platform—an uncomplicated and efficient solution for obtaining verified, trusted images and videos directly from the servicers handling truck repairs under our warranty. The process is seamlessly simple for servicers, ensuring no delays for our customers. Additional advantages for our company include swift processing, user-friendly interface, real-time image authentication, and top-notch customer support.” 

- Brandy Beck, SVP of Claims at National Truck Protection